By Ian Walker


The U.K. government said late Tuesday that it is minded to accept Parker Hannifin Corp.'s undertakings to address its concerns over the U.S. company's planned 6.3 billion pound ($7.68 billion) takeover of Meggitt PLC.

The U.K. secretary of state for business, energy and industrial strategy issued a public interest intervention notice on the deal last October citing competition and national security matters, and asked the U.K. Competition and Markets Authority to investigate.

Parker has since offered to sell its Aircraft Wheel and Brake Division, located in Ohio, to Kaman Corporation which the secretary said could address the government's concerns.

The undertakings are now subject to a public consultation which is due to end on July 13, whereupon the secretary of state will be able to approve the acquisition without further review.

"We are pleased that following very constructive engagement with the U.K. Government, the Secretary of State is minded to accept the national security and competition undertakings we have offered as part of our pending acquisition of Meggitt," Parker Chairman and Chief Executive Tom Williams said Wednesday.

"The combination of Parker and Meggitt is an exciting opportunity for both companies and we look forward to welcoming Meggitt to the Parker team."

The companies agreed on the merger last August, and at that time Parker said it would offer a number of legally binding commitments to the U.K. government, including ensuring that Meggitt will continue to meets its contractual obligations, maintaining its U.K. headquarters and ensuring that most of Meggitt's board will be U.K. nationals.

The deal, which is expected to complete in the third quarter of this year, has already been approved by the European Commission.


Write to Ian Walker at ian.walker@wsj.com


(END) Dow Jones Newswires

06-29-22 0314ET